Landlord rents a parcel of real estate to Tenant. During the term of the lease,...
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Landlord rents a parcel of real estate to Tenant. During the term of the lease, Tenant locates a more suitable parcel and pays Landlord $ in exchange for Landlord's agreement to terminate the lease. How should Landlord classify the $ receipt for federal income tax purposes? A As advance rent to be capitalized and amortized over the remaining term of the original lease B As a security deposit to be converted to rent income at the C As a nontaxable receipt D As rental income in the year of the receipt E None of the above
Landlord rents a parcel of real estate to Tenant. During the term of the lease, Tenant locates a more suitable parcel and pays Landlord $ in exchange for Landlord's agreement to terminate the lease. How should Landlord classify the $ receipt for federal income tax purposes?
A As advance rent to be capitalized and amortized over the remaining term of the original lease
B As a security deposit to be converted to rent income at the
C As a nontaxable receipt
D As rental income in the year of the receipt
E None of the above
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